Types Of Health Insurance Plans And Functions

Health insurance truly said that health is wealth. Only a healthy person can enjoy life up to the fullest. To maintain one's health, a person is required to exercise regularly and eat healthy diet.

Every day numerous researches are carried out to find out the balanced diet equation. According to some studies proteins should be high and the levels of fats the least, carbohydrates should be taken in moderation. It has been proved that in addition to three basic meals, you should also take snacks.

Fruits should be taken more than three times a day. People spend a great deal of their time exercising to maintain their fitness. Exercising is now no longer limited to community parks. People now are members of dance classes, yoga groups and gyms.

Need For Health Insurance:

Due to sedentary lifestyle of increasing number of people there has been rise in health problems. Moreover, the eating habits of many are unhealthy. They eat a lot of junk and fast food. The combination of sedentary lifestyle and unhealthy eating habits is extremely harmful causing an exponential rise in number of people suffering from obesity, cardiovascular disease and diabetes.

Insuring one's health is need of the hour. Thus, it is imperative that to save oneself from expensive health treatment, one takes health insurance policy for himself and his family. It is advisable that you take health insurance scheme at a young age. This is because the older you become the health insurance plans become costlier, as health falls with age. Moreover, incase of unforeseen health problem, the policy saves you a lot of money.

While selecting an insurance plan, ensure that the plan covers various health costs that include your health necessities. For instance, hospital costs must involve board, room and other costs, which may have spent during your stay.

Types Of Health Insurance Plans:

The kind of health insurance plan you choose depends on your age and the time period for which you plan to take the policy. They are mainly categorized into two types-managed health care plans and reimbursement or indemnity health plan.

Managed health insurance plans are of the following types:

Full or complete health insurance. The policy includes all kinds of diseases and covers the treatment cost irrespective of the doctor or hospital treating your ailment. The money involved in the treatment is deducted on the maturity of the health policy.

Medicaid or Medicare insurance is taken by retired citizens or people with low salary.

PPO or Preferred Provider Organization- It is a kind of discount health insurance scheme. The policy includes complete treatment cost of doctors and hospitals. If the hospitals or doctors from whom policyholder takes medical treatment are assigned policy providers, then the holder gets discounted or reduced bill. It thus, saves the holder a lot of money.

Short duration life insurance policy. This kind of insurance policy is taken for a particular duration. It does not include condition of childbirth and pregnancy. The features and rules of short duration health policy are complicated.

Catastrophic insurance is another kind of insurance policy. Usually the people with decent bank balance take this insurance policy. The sum of money that is deducted on the maturity of the policy is comparatively larger in catastrophic insurance policy. Some times, the insured amount paid to the shareholder that is paid during ailments has limits or caps.

Health Maintenance Organizations or HMO. The services of this health insurance policy can be availed by paying low premiums. This is a main advantage of the policy. However, the services cannot be used in case of any emergency situations. Also, HMO does not provide preventive measures like mammograms, physicals and immunization.

An indemnity or reimbursement health insurance policy allows you to select doctors and hospitals as per your wish. However, it reimburses the amount only in part. Irrespective of any health insurance policy you take, it is suggested that you take it during an early phase of your life. It is an important investment.